§ 18420 Dissolution Of Unincorporated Associations

Corporations Code·California

AI SummaryVerified

When a group that isn’t a corporation decides to end, its leaders (or members if there are no leaders) must quickly finish up everything, pay what they owe, collect money they’re owed, and handle any remaining stuff the way the law says.

Key Takeaways

•Act fast once the group decides to dissolve.
•Pay all known debts or set aside money for them.
•Collect any money that’s owed to the group.
•Do any other steps needed to finish up the group’s business.
•Handle the group’s remaining assets according to the rules in Section 18130.

Example

A neighborhood book club decides to close down after a few years.

The club’s board has to quickly pay any unpaid fees for the meeting space, collect any membership dues that haven’t been paid yet, sell the extra books, and then follow the rules for what to do with the money left over.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 18420 Dissolution Of Unincorporated Associations

Promptly after commencement of dissolution of an unincorporated association, the board or, if none, the members shall promptly wind up the affairs of the association, pay or provide for its known debts or liabilities, collect any amounts due to it, take any other action as is necessary or appropriate for winding up, settling, and liquidating its affairs, and dispose of its assets as provided in Section 18130. (Added by Stats. 2005, Ch. 116, Sec. 5. Effective January 1, 2006.)

Last verified: January 10, 2026

Key Terms

dissolution unincorporated association wind up settling liquidating

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 18420.

§ 18420 Dissolution Of Unincorporated Associations

Corporations Code·California

AI SummaryVerified

§ 18420 Dissolution Of Unincorporated Associations

Key Takeaways

•Act fast once the group decides to dissolve.
•Pay all known debts or set aside money for them.
•Collect any money that’s owed to the group.
•Do any other steps needed to finish up the group’s business.
•Handle the group’s remaining assets according to the rules in Section 18130.

Example

A neighborhood book club decides to close down after a few years.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 18420 Dissolution Of Unincorporated Associations

Last verified: January 10, 2026

Key Terms

dissolution unincorporated association wind up settling liquidating

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 18420.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References